Court finally terminates CFTC case against JAFX

The Utah District Court has finally closed a case brought by the Commodity Futures Trading Commission (CFTC) against unregistered Forex broker JAFX.

Let’s recall that the case was launched in July 2018. The CFTC Complaint alleged that, from at least September 2016 and continuing to the summer of 2018, JAFX operated as a retail foreign exchange (forex) dealer, without being registered with the CFTC, as required, and that it failed to provide customers with the required Risk Disclosure Statement.

Specifically, the CFTC’s Complaint alleged that JAFX has been the counterparty to leveraged, retail forex transactions for customers located in the United States, who are not Eligible Contract Participants (ECPs). JAFX allegedly solicits orders from U.S. customers who are not ECPs to open leveraged, retail forex trading accounts through JAFX’s website, as well as videos on YouTube, where JAFX is, or offers to be, the counterparty to each leveraged retail forex transaction. Customers were directed to open trading accounts by submitting an online account application through JAFX’s website, and JAFX encouraged customers to access and trade their accounts via a mobile application, according to the Complaint.

U.S. customers could allegedly open an account with JAFX for as little as $100.

In June 2020, a supplemental consent order was entered among the parties so that the case would be resolved. That order provided that JAFX will have to pay a civil monetary penalty of $600,000. The proposed Supplemental Consent Order was said to have resolved all issues in the case.

However, the proceedings remained ongoing for unknown reason. On September 29, 2021, the Court finally issued an order closing the case. The lawsuit was terminated as per the supplemental consent order.

The Utah District Court has not been involved in Forex cases often. Apart from JAFX, another case that proceeded there was the CFTC lawsuit brought against Tallinex.